tutor2u | Can a currency depreciation lift Brazil out of recession?

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Can a currency depreciation lift Brazil out of recession?

Geoff Riley

9th December 2015

I will be using this mini case study when teaching exchange rates next term. The Brazilian real has been falling rapidly against the US dollar. Since mid-2014, the real has depreciated 43 per cent against the dollar although the real trade-weighted decline is smaller. Can an exchange rate shift of the size help to lift the Brazilian economy out of recession by restoring price competitiveness and improving the external trade figures?

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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